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Buying RMB ETF on HKEX
10-11-2012, 10:00 AM.
Post: #1
Buying RMB ETF on HKEX
Was interested in E Fund CSI 100 A-Share ETF (HK:83100), mentioned in NextInsight (http://nextinsight.net/index.php/story-a...a-recovery).

As a Singapore citizen & resident, is there any restriction / issues on buying an RMB ETF such as this? Checking with DBS Vickers & OCBC Sec but don't know how long they'll take to reply.

For this ETF, there is also a HKD counter (HK:03100). Trying to understand how the forex exposure works if I buy the HKD version of the ETF. Suppose I buy the HKD counter today at an exchange rate of RMB 1: HKD 1.2. One month later the RMB appreciates, exchange rate is RMB 1: HKD 1.5. Assuming no change in the RMB price of the ETF, does it mean that the HKD price should go higher to reflect the exchange rate difference?

Appreciate advice from all, thanks.

For more info on the ETF, see http://www.efunds.com.hk/fund.html

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10-11-2012, 11:51 AM.
Post: #2
RE: Buying RMB ETF on HKEX
to me, buying ETF from HK is much safer than buying ETF from SG

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14-02-2014, 06:21 PM.
Post: #3
RE: Buying RMB ETF on HKEX
I do mine on SGX via UETF SSE50China100
Ticker: JK8
lot size 100 shares
pricing at 1 cent instead of 0.5cents (e.g. 1.50, 1.51, 1.52)
Trades in SGD, hence no forex losses
Though this is a synthetic ETF, it has passed Rabobank's stress test. Safe in my opinion.

As with all ETFs, investors need to pass SIP tests.

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15-02-2014, 11:20 PM.
Post: #4
RE: Buying RMB ETF on HKEX
(10-11-2012, 10:00 AM)tjiathai Wrote: As a Singapore citizen & resident, is there any restriction / issues on buying an RMB ETF such as this? Checking with DBS Vickers & OCBC Sec but don't know how long they'll take to reply.

If it is traded on HKSE it should be no problem to buy. If your broker doesn't reply, you should just go online and try buying. Please note that local brokers will charge a monthly custody fee.

Quote:For this ETF, there is also a HKD counter (HK:03100). Trying to understand how the forex exposure works if I buy the HKD version of the ETF. Suppose I buy the HKD counter today at an exchange rate of RMB 1: HKD 1.2. One month later the RMB appreciates, exchange rate is RMB 1: HKD 1.5. Assuming no change in the RMB price of the ETF, does it mean that the HKD price should go higher to reflect the exchange rate difference?

If the component stocks are mainland listed, then the HKD ETF price must reflect the exchange rate.

BTW, have you consider ETF of mainland companies listed in HK instead (H-shares)?

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